Flint Company estimates its sales at 120,000 units in the first quarter and that sales willincrease by 12,000 units each quarter over the year. They have, and desire, a 25% endinginventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of thecredit customers pay within the quarter. The remainder is received in the quarter following sale.Cash collections for the third quarter are budgeted at ........
Product sales are sold on a cash or credit basis. Cash sales are collected at the time of sale while credit sales are collected according to the terms of sale.
Answer and Explanation:
The answer is $3,546,000
See the following table. Note that the 25% desired ending inventory of finished goods is not a factor since all units sold...
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from Finance 101: Principles of FinanceChapter 18 / Lesson 3